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Market Session Recaps

Asia Session

Thu, Mar 5 2009, 07:04 GMT
by Forex.com Research Desk

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The markets were cautiously muted in Asia ahead of the pending rate decisions by the ECB and the BoE later today. As most expect rate cut by both banks, both home currencies, the Euro and the Pound lost some ground as could be anticipated. The EUR/USD started the session at highs of 1.2663, which in fact was also the high over the past 24 hours, and slowly gave back ground for the rest of the session until hitting a low just under 1.2580. Against the Yen, the Euro also slid, this time not so drastic a move from 125.55 to near 124.83 before a reprieve to the 125.20 region. The ECB is expected to cut its rate by 50 basis points to an all time low of 1.50% later at 12:45GMT. Most investors are also looking for ECB President Trichet to come up with some sort of profound plan to help shore up the situation in Europe and neighboring Easter Europe. In England, the GBP/USD pair hit a two day high of 1.4200 today, but that was eroded down to the 1.4128 levels by sessions end and ahead of the pending rate cut.
The BoE will announce rates at 12:00 GMT and although a 50 bp cut to 0.50%, murmurs of a rate next to 0% are being heard.

USD/JPY made solid gains from 98.89 lows to top out near 99.50 as the markets seemed elated on news that China could have a stimulus package in the works, boosting equities today in the US and Asia as well.

Be aware of not only the upcoming rate decisions, but prior to those in Europe we have German Retail Sales, and Euro Zone GDP as a nice warm up.

Upcoming Economic Data Releases (London Session):

Published on  Thu, Mar 5 2009, 07:16 GMT

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